The mail order specialist, best known here for its Grattan and Freemans catalogues, would shake up the UK homewares market with the arrival of Crate and Barrel, putting pressure on retailers such as Habitat and John Lewis.
Otto wants to expand its empire and bring some of its most well-known brands into new territories. It bought a majority stake in Crate and Barrel in February 1998, but to date the retailer has remained in its domestic US market.
If Crate and Barrel crosses the Atlantic, it is likely to be run by Otto's UK division.
Otto UK chief executive Mike Hancox said: 'It [a Crate and Barrel UK entry] could happen in the future. It is the sort of brand that everyone aspires to.' However, Hancox stressed the plans are long term and that no launch was imminent.
Management Horizons chief executive George Wallace said: 'There is a customer appetite in the UK for Crate and Barrel. European ownership [of Crate and Barrel] means the company understands operational
matters in other countries such as the UK.'
Crate and Barrel was founded in Chicago by Gordon and Carol Segal in 1962. Today its 141-strong portfolio is still managed by the family.
Since the retailer was bought by Otto, its sales have tripled from almost US$350 million (£190.4 million) in 1998 to more than US$1 billion (£544.1 million) in 2004. Otto has directed Crate and Barrel's mail order and online push.
Hancox added that other Otto brands may also debut in the UK, which could include discounter Bonprix and children's range Kidoki. He said the Otto Group is to start buying globally to drive cost benefits.
The move towards greater synergy for Otto follows a ten-month review of the UK division last year.
Otto UK is preparing to reveal a home shopping brand aimed at 25- to 35-year-olds next year, competing with Next Directory.
The venture, as yet unnamed, will target customers via catalogue and the internet. It will form a major part of Hancox's rescue strategy for the unprofitable Otto UK, which he joined earlier this year from Littlewoods Shop Direct.
Hancox said: 'It will be a big book, but it is in early development. It will also have a strong internet presence because of the age of its customer.'
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